FTSE hands back early gains to close below 6,000 again
The FTSE 100 has ended the day at 5,960 points. The blue-chip index fell 0.093 per cent in Tuesday’s session or 5.5 points after its earlier gains – it was up 4 per cent earlier in the day – were erased.
To re-quote Markets.com chief market analyst Neil Wilson from earlier in the day: "This looks like a short-term bounce on oversold levels, not a meaningful turn. It smells like a dead cat."
“Investors should not be putting money to work yet in equities”
Clark Fenton, portfolio manager of diversified returns at RWC Partners, is warning investors off piling back into the stock market just because they fell yesterday:
UK coronavirus cases reach 373
The latest official figures show that the number of coronavirus cases in the UK has reached 373, up from 319 in yesterday’s daily update.
The Department of Health and Social Care also revealed that six patients who tested positive for Covid-19 have died.
Some 26,261 people have been tested in the UK.
Cases identified in England
Source: Department of Health and Social Care
“Very different to the pain felt in the aftermath of the financial crisis”
TwentyFour Asset Management’s Mark Holman argues that investors “should be wary of making too strong a comparison with 2008” in the current market conditions.
The funds that suffered the biggest losses in Crash Monday
Schroder ISF Global Energy made the biggest loss in yesterday’s sell-off, down almost 33 per cent over the day.
This Trustnet article reveals the funds with the largest falls and returns during Crash Monday.
FTSE 100 up 3.8% as relief rally continues
The FTSE 100’s recovery from Monday’s brutal sell-off continues, with the index up some 3.79 per cent at 12:00.
TUI was the biggest riser over the morning, gaining 11.6 per cent as investors took another look at travel businesses that have suffered during the coronavirus outbreak.
Royal Dutch Shell, Evraz, Standard Chartered and Hargreaves Lansdown were the other names leading the index’s morning rally.
UK ‘two weeks behind Italy’ in coronavirus outbreak
This tweet from Mark Handley, professor of networked systems at University College London, has been catching peoples’ eyes today:
Tuesday’s rebound ‘smells like a dead cat bounce’
Neil Wilson, chief market analyst at Markets.com, said:
“European stock markets looked to recover some ground early on Tuesday on hopes of a round of stimulus measures as the market tried to rally the troops after the rout of Black Monday. Investors are licking wounds and there is a stabilisation of the rout, but this looks like a short-term bounce on oversold levels, not a meaningful turn. It smells like a dead cat. The stimulus is coming, but the situation on the ground gets worse. It seems comments from Donald Trump, and overnight some emollient tones from the Japanese authorities, are helping.”
FTSE up in early trading
After its worst daily fall since the height of the 2008 global financial crisis, the FTSE 100 opened higher on Tuesday morning as investors eye fresh stimulus fresh policymakers to ease the economic impact of coronavirus.
As at 08:32, the blue-chip index was up 2.18 per cent and was sitting at 6,097 points. This followed a 7.69 per cent fall in Monday’s session (the fifth biggest fall on record), which left the FTSE at 5,956 points.
Stocks markets across Europe have opened higher, after their heavy losses in the previous day.
Overnight, Asian markets made gains after Japanese prime minister Shinzo Abe said the government would work with the Bank of Japan to stimulate the economy. The Nikkei 225 ended last night’s trading up 0.85 per cent, having started it down some 3 per cent.